Question

Which of the following best demonstrates the way consumers and producers

influence each other in the free-market system?
A. A circular flow model
B. An assembly line
C. A flow chart
D. A downward spiral

Answer 1

A. A circular flow model

Explanation:

• The circular flow model is the model of the economy and the circular flow model is an example or model of producers and consumers who can explain or show how they affect each other using the free market system. It simplifies the process and shows how customers and producers impact each other.
• so correct option is A. A circular flow model